Romanian transmission system operator Transelectrica, Georgian transmission system operator Georgian State Electrosystem, Azerbaijan’s power utility AzerEnerji, and Hungary’s power utility MVM have announced the establishment of a joint venture, Green Energy Corridor Power Company, to oversee the installation of a submarine cable under the Black Sea. The shareholders’ agreement for this project was signed during the 8th Ministerial Meeting of the Green Corridor project, held in Bucharest. The new firm will be headquartered in Romania.
The Green Energy Corridor project aims to develop a high-voltage direct current (HVDC) interconnector that will initially link Romania and Georgia, with plans to extend the cable to Hungary and Azerbaijan. This interconnection is set to integrate the transmission networks of these four countries and facilitate the flow of renewable energy across the region. The project, which was formally agreed upon by the four countries in December 2022, has been included in the European Network of Transmission System Operators (ENTSO-E) plans. Georgia has projected the total cost of the project to exceed EUR 2 billion, with an operational target set for late 2029.
According to Romania’s Ministry of Energy, the submarine cable will enhance both national and regional energy security, improve connectivity in the Black Sea basin, diversify energy supply sources, and capitalize on the potential for renewable energy production. It is expected to increase the share of renewable energy in Romania’s energy mix. Minister of Energy Sebastian Burduja emphasized the project’s significance for Romania and the European Union, noting its contribution to the decarbonization of the energy sector through the transport of renewable energy. The initial results of the feasibility study are scheduled to be presented in November at the 2024 United Nations Climate Change Conference (COP29) in Baku.
Additionally, the representatives from Azerbaijan, Georgia, Hungary, and Romania have signed a protocol amending the initial agreement. This protocol stipulates that EU legislation and obligations from Romania and Hungary’s EU membership will take precedence over the contract’s provisions. Discussions are also underway regarding the potential involvement of Bulgaria in the feasibility study and the broader project.
